STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
Performed as Special Assistant Auditors for
The Auditor General, State of Illinois
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
TABLE OF CONTENTS
Agency Officials .......... .. . ........... .. . . . . ... .. ..... .. . .. ...... ....... .... .. ..................... .... .. . ... .. . . . ....... ..... 1
Management Assertion Letter............................................................................................ 2
Compliance Report
Summary...................................................................................................................... 4
Accountants' Report
Independent Accountants' Report on State Compliance, on Internal Control
Over Compliance, and on Supplementary Information for State Compliance
Purposes................................................................................................................. 6
Schedule of Findings
Current Findings - State Compliance .... .. .. ... .. .... ... ........ ............... .... ... ... .. ............ 9
Prior Findings Not Repeated................................................................................. 15
Supplementary Information for State Compliance Purposes
Summary...................................................................................................................... 16
Fiscal Schedules and Analysis
Comparative Schedule of Revenues and Expenditures......................................... 17
Notes to Comparative Schedule ofRevenues and Expenditures.......................... 18
Analytical Review of Revenues and Expenditures .. ... .. ......... ... .. . .. .... .. .. .. .. .... ...... . 20
Reconciliation of State Fair Revenues to Deposits Remitted to
the Comptroller................................................................................................... 21
Detail Schedule of Revenues................................................................................. 22
Pari-Mutuel Wagering Receipts and Expenditures............................................... 23
Grandstand Shows Revenues and Expenditures.................................................... 24
Competitive Events Revenues and Expenditures.................................................. 25
Analysis of Operations
Division Functions and Planning Program............................................................ 26
Number ofEmployees........................................................................................... 28
Miscellaneous Operating Statistics (Not Examined)............................................. 29
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
Executive Director
Chief Fiscal Officer
General Counsel
Chief Internal Auditor
Fair Manager
Department offices are located at:
State Fairgrounds
801 E. Sangamon Ave.
Springfield, IL 62702
AGENCY OFFICIALS
Mr. Robert F. Flider, Acting (2/15/12- Current)
Mr. H.W. Devlin, Acting (12/17/11- 2/14112)
Mr. James Larkin, Acting (10/19111 -12/16/11)
Mr. Thomas Jennings (1 0/8/08 - 10/18/11)
Ms. Laura A. Lanterman
Ms. Shari West (1113/11 - Current)
Ms. Shari West, Acting (4/1/11 - 11/2/11)
Mr. Dominic Saebeler (1/111 0- 3/31/11)
Ms. Margaret Vandijk (6/1/09- 12/31109)
Mr. Ted Tracey, Acting (8/111 0 - Current)
Mr. John Rednour, Jr.
DuQuoin State Fair offices are located at:
655 Executive Drive
DuQuoin, IL 62832-3850
1
Dlinots
AgriCUlture
Office of the Director
Pat Quinn, Governor
Robert F. Flider, Acting Director
State Fairgrounds P.O. Box 19281 Springfield, IL 62794-9281 21 7n82-2172 TOO 217/524-6858 Fax 21 7n85-4505
STATE COMPLIANCE EXAMINATION
MANAGEMENT ASSERTION LETTER
May4,2012
SikichLLP
3201 West White Oaks Drive, Suite 102
Springfield, IL 62704
Ladies and Gentlemen:
We are responsible for the identification of, and compliance with, all aspects of laws,
regulations, contracts, or grant agreements that could have a material effect on the operations of
the State of Illinois, Department of Agriculture, DuQuoin State Fair (DSF). We are responsible
for and we have established and maintained an effective system of, internal controls over
compliance requirements. We have performed an evaluation of the DSF's compliance with the
following assertions during the two-year period ended September 30, 2011. Based on this
evaluation, we assert that during the years ended September 30,2011 and September 30,2010,
the DSF has materially complied with the assertions below.
A. The DSF has obligated, expended, received and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The DSF has obligated, expended, received and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions imposed
by law upon such obligation, expenditure, receipt or use.
C. The DSF has complied, in all material respects, with applicable laws and regulations,
including the State uniform accounting system, in its financial and fiscal operations.
2
D. State revenues and receipts collected by the DSF are in accordance with applicable laws
and regulations and the accounting and recordkeeping of such revenues and receipts is
fair, accurate and in accordance with law.
E. Money or negotiable securities or similar assets handled by the DSF on behalf of the
State or held in trust by the DSF have been properly and legally administered, and the
accounting and recordkeeping relating thereto is proper, accurate and in accordance with
law.
Yours very truly,
lllinois Department of Agriculture, DuQuoin State Fair
~~/?~
Mr. Rofiert F. Flider, Acting Director
an, CPA, Chief Fiscal Officer
3
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30, 2011
COMPLIANCE REPORT
SUMMARY
The compliance testing performed during this examination was conducted in accordance with
Government Auditing Standards and in accordance with the Illinois State Auditing Act.
ACCOUNTANTS' REPORT
The Independent Accountants' Report on State Compliance, on Internal Control Over
Compliance, and on Supplementary Information for State Compliance Purposes does not contain
scope limitations, disclaimers, or other significant non-standard language.
SUMMARY OF FINDINGS
Number of
Findings
Repeated findings
Current
Report
5
0
Prior recommendations implemented or not repeated 2
Item No. Page
11-1 9
11-2 11
11-3 12
SCHEDULE OF FINDINGS
FINDINGS (STATE COMPLIANCE)
Description
Issuance of complimentary grandstand tickets in
excess of contracts
Failure to reconcile grandstand ticket sales
Noncompliance with Illinois Horse Racing Act
of 1975
4
Prior
Report
2
0
0
Finding Type
Noncompliance
and Significant
Deficiency
Noncompliance
and Significant
Deficiency
Noncompliance
and Significant
Deficiency
11-4 13 Failure to comply with State Fair Act Noncompliance
and Significant
Deficiency
11-5 14 Failure to publish professional and artistic contracts Noncompliance
and Significant
Deficiency
PRIOR FINDINGS NOT REPEATED
Item No. Page Description
A. 15 Contracts not signed timely
B. 15 Non-paid credential form missing information
EXIT CONFERENCE
The Department waived an exit conference in correspondence dated March 9, 2012.
Responses to the recommendations were provided by Laura Lanterman in correspondence dated
March 16,2012.
5
~Sikich.
Certified Public Accountants & Business Advisors
Members of American Institute of
Certified Public Accountants
3201 West White Oaks Drive, Suite 102 • Springfield, IL 62704
INDEPENDENT ACCOUNTANTS' REPORT ON STATE COMPLIANCE,
ON INTERNAL CONTROL OVER COMPLIANCE, AND ON
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
Honorable William G. Holland
Auditor General
State of Illinois
Compliance
As Special Assistant Auditors for the Auditor General, we have examined the State of Illinois,
Department of Agriculture, DuQuoin State Fair's (DSF) compliance with the requirements listed
below, as more fully described in the Audit Guide for Financial Audits and Compliance
Attestation Engagements of Illinois State Agencies (Audit Guide) as adopted by the Auditor
General, during the two years ended September 30, 2011. The management of the DSF is
responsible for compliance with these requirements. Our responsibility is to express an opinion
on the DSF's compliance based on our examination.
A. The DSF has obligated, expended, received, and used public funds of the State in
accordance with the purpose for which such funds have been appropriated or otherwise
authorized by law.
B. The DSF has obligated, expended, received, and used public funds of the State in
accordance with any limitations, restrictions, conditions or mandatory directions imposed
by law upon such obligation, expenditure, receipt or use.
C. The DSF has complied, in all material respects, with applicable laws and regulations,
including the State uniform accounting system, in its financial and fiscal operations.
D. State revenues and receipts collected by the DSF are in accordance with applicable laws
and regulations and the accounting and recordkeeping of such revenues and receipts is
fair, accurate and in accordance with law.
E. Money or negotiable securities or similar assets handled by the DSF on behalf of the
State or held in trust by the DSF have been properly and legally administered and the
accounting and recordkeeping relating thereto is proper, accurate, and in accordance with
law.
We conducted our examination in accordance with attestation standards established by the
American Institute of Certified Public Accountants; the standards applicable to attestation
engagements contained in Government Auditing Standards issued by the Comptroller General of
the United States; the Illinois State Auditing Act (Act); and the Audit Guide as adopted by the
6
Auditor General pursuant to the Act; and, accordingly, included examining, on a test basis,
evidence about the DSF' s compliance with those requirements listed in the first paragraph of this
report and performing such other procedures as we considered necessary in the circumstances.
We believe that our examination provides a reasonable basis for our opinion. Our examination
does not provide a legal determination on the DSF's compliance with specified requirements.
In our opinion, the DSF complied, in all material respects, with the compliance requirements
listed in the first paragraph of this report during the two years ended September 30, 2011.
However, the results of our procedures disclosed instances of noncompliance with the
requirements, which are required to be reported in accordance with criteria established by the
Audit Guide, issued by the Illinois Office of the Auditor General and which are described in the
accompanying schedule offindings as items 11-1 through 11-5.
Internal Control
Management of the DSF is responsible for establishing and maintaining effective internal control
over compliance with the requirements listed in the first paragraph of this report. In planning
and performing our examination, we considered the DSF' s internal control over compliance with
the requirements listed in the first paragraph of this report as a basis for designing our
examination procedures for the purpose of expressing our opinion on compliance and to test and
report on internal control over compliance in accordance with the Audit Guide, issued by the
Illinois Office of the Auditor General, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the DSF's internal control over compliance.
A deficiency in an entity's internal control over compliance exists when the design or operation
of a control over compliance does not allow management or employees, in the normal course of
performing their assigned functions, to prevent, or detect and correct, noncompliance with the
requirements listed in the first paragraph of this report on a timely basis. A material weakness
over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a
requirement listed in the first paragraph of this report will not be prevented, or detected and
corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be deficiencies, significant deficiencies, or material
weaknesses. We did not identify any deficiencies in internal control over compliance that we
consider to be material weaknesses, as defined above. However, we identified certain
deficiencies in internal control over compliance that we considered to be significant deficiencies
as described in the accompanying schedule of findings as items 11-1 through 11-5. A significant
deficiency in an entity's internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
7
As required by the Audit Guide, immaterial findings excluded from this report have been
reported in a separate letter to your office.
The DSF's responses to the findings identified in our examination are described in the
accompanying schedule of findings. We did not examine the DSF's responses and, accordingly,
we express no opinion on the responses.
Supplementary Information for State Compliance Purposes
Our examination was conducted for the purpose of forming an opinion on compliance with the
requirements listed in the first paragraph of this report. The accompanying supplementary
information as listed in the table of contents as Supplementary Information for State Compliance
Purposes is presented for purposes of additional analysis. We have applied certain limited
procedures as prescribed by the Audit Guide as adopted by the Auditor General to the 2011 and
201 0 Supplementary Information for State Compliance Purposes, except for information on
Miscellaneous Operating Statistics on which we did not perform any procedures. However, we
do not express an opinion on the supplementary information.
We have not applied procedures to the 2009 Supplementary Information for State Compliance
Purposes, and accordingly, we do not express an opinion thereon. ·
This report is intended solely for the information and use of the Auditor General, the General
Assembly, the Legislative Audit Commission, the Governor, and the DSF management, and is
not intended to be and should not be used by anyone other than these specified parties.
Springfield, Illinois
May 4, 2012
8
11-1 FINDING: (Issuance of grandstand complimentary tickets in excess of contracts)
The DuQuoin State Fair (DSF) issued grandstand complimentary tickets for the 2011
Fair in excess of the amount allotted by the applicable performer's contract.
The DSF reserves the right to receive and distribute no more than 250 grandstand
complimentary tickets per performance as a part of each performer's contract at no
cost to the DSF. The grandstand complimentary tickets are used by the Fair for
advertising, barter or exchange, incentives, YIP's, and special requests. The DSF
distributed 132 additional grandstand complimentary tickets, with an approximate
value of$4,520, in excess of the 750 limit allotted for three performances. The DSF
also issued 72 complimentary grandstand tickets, with an approximate value of$1,960
to a corporate sponsor in return for promotional activities; however, this exchange
transaction was not specifically addressed in the corporate sponsor's contract with the
DSF. Good business practices dictate monitoring and adhering to applicable contract
terms.
We also noted the DSF has not developed formalized written policies and procedUI'es
regarding the issuance of complimentary tickets. The State Fair Act (Act) (20 ILCS
21 0/6) requires the Department of Agriculture to set policies and procedures for the sale,
barter or exchange of tickets and for ticket refunds for cancelled events. The Act (20
ILCS 21 0/12) further requires that these policies be established by rule, in accordance
with the Illinois Administrative Procedure Act. Although the DSF did document the
disposition of all complimentary tickets, the DSF did not have rules as prescribed by the
Act.
DSF officials stated that complimentary tickets exceeding the 250 per grandstand
show was due to oversight. The seventy-two issued without being included in the
sponsor's contract was due to an error in the writing of the contract. DSF was not
aware of the need to establish written policies and procedures regarding the issuance
of complimentary tickets.
Complimentary tickets, in general, have a higher inherent risk for misappropriation.
Failure to adequately monitor the issuance of complimentary tickets could result in
misuse of grandstand complimentary tickets. Furthermore, failure to establish written
policies and procedures regarding the issuance of complementary tickets is in
noncompliance with the Act. (Finding Code No. 11-1)
RECOMMENDATION:
We recommend the DuQuoin State Fair develop and implement rules, in accordance
with the Illinois Administrative Procedure Act, for the sale, barter or exchange of
grandstand complimentary tickets in accordance with the State Fair Act. In addition, we
recommend the DuQuoin State Fair comply with the terms of the entertainment
contracts and modify contract terms to address the exchange of grandstand tickets for
promotional activities when necessary.
9
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will develop and implement rules, in accordance
with the Illinois Administrative Procedure Act, for the sale, barter or exchange of
grandstand complimentary tickets in accordance with the State Fair Act and will
ensure that it complies with the terms of the entertainment contracts or modifies the
contracts when needed.
10
11-2 FINDING: (Failure to reconcile grandstand ticket sales)
The DuQuoin State Fair (DSF) does not perform a reconciliation of total grandstand
ticket sales reported by Ticketmaster to the DSF ticket office receipts or to the total
grandstand deposits recorded by the State Comptroller.
The Department of Agriculture contracts with Ticketmaster to provide the ticket
selling equipment and the ticket sales reporting system for all grandstand shows. We
noted the DSF failed to reconcile total grandstand ticket sales reported by Ticketmaster
to the total ticket sales recorded by the DSF ticket office. The unreconciled difference
indicated that sales reported by the DSF ticket office exceeded sales reported by
Ticketmaster by $2,710. Additionally, we noted the DSF failed to reconcile grandstand
ticket sales reported by the DSF ticket office to total grandstand deposits recorded by the
State Comptroller. The unreconciled difference indicated that sales reported by the DSF
ticket office exceeded receipts deposited by $2,830.
The Statewide Accounting Management System (Procedure 25.40.20) requires a
monthly reconciliation of receipts to receipt account records maintained by the Office of
the Comptroller to ensure the early detection and correction of errors. The Fiscal Control
and Internal Auditing Act (30 ILCS 10/3001) requires all State agencies to establish and
maintain a system of internal fiscal and administrative controls, which shall provide
assurance that revenues are properly recorded and accounted for and that funds,
property, and other assets are safeguarded against waste, loss, unauthorized use, and
misappropriation.
DSF officials stated that they believed that the inability to reconcile ticket sales was
tied to tickets that were put on hold but never purchased. Attempts to reconcile this
were unsuccessful however.
Failure to reconcile ticket sales reported by Ticketmaster to DSF and Comptroller
records could lead to a loss of revenue and inaccurate financial reporting. (Finding
Code No. 11-2)
RECOMMENDATION:
We recommend the DuQuoin State Fair perform a monthly reconciliation of total
grandstand ticket sales reported by Ticketmaster to the DSF ticket office receipts and to
the total grandstand deposits recorded by the State Comptroller.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will perform a monthly reconciliation of total
grandstand tickets sales reported by Ticketmaster to the Fair's ticket office receipts
and to the total grandstand deposits recorded by the State Comptroller.
11
11-3 FINDING: (Noncompliance with the Illinois Horse Racing Act of 1975)
The DuQuoin State Fair (DSF) was not in compliance with the Illinois Horse Racing
Act of 1975 (Act) concerning the number of days of its racing program and the
nominating, sustaining and starting fees exceeding 2% of the purse for certain races.
The DSF held only 3 days of horse racing events in 2010 and 2011. Additionally, the
nominating, sustaining, and starting fees of $52,050 paid by the entrants for the DSF in
2011 amounted to 15% of the $352,000 purses and exceeded the 2% limit outlined by
the Act by approximately $45,010.
The Illinois Horse Racing Act of 1975 (230 ILCS 5/31(j)) requires the Department of
Agriculture to provide by rule, with the assistance and advice of the Illinois
Standardbred Breeders Fund Advisory Board, that at least a 5 day racing program
shall be conducted at the State Fair each year and provide for the payment of
nominating, sustaining and starting fees for races promoting the sport of harness
racing and for the races to be conducted at the State Fair, provided that the
nominating, sustaining and starting payment required from an entrant shall not exceed
2% of the purse of such race. All nominating, sustaining and starting payments shall
be held for the benefit of entrants and shall be paid out as part of the respective purses
for such races.
DSF officials stated that the noncompliance with the statute is caused by purses
having declined due to budget constraints while nominating fees have not changed.
Failure to comply with the provisions of the Illinois Horse Racing Act of 1975
represents noncompliance with State law. (Finding Code No. 11-3)
RECOMMENDATION:
We recommend the DuQuoin State Fair comply with the provisions of the Illinois Horse
Racing Act.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will comply with the provisions of the Illinois
Horse Racing Act.
12
11-4 FINDING: (Failure to comply with State Fair Act)
The DuQuoin State Fair (DSF) has not developed or adopted an official plan for the
operation of the DSF and its fairgrounds and facilities.
In addition, the DSF has not developed and adopted or presented to the public an official
long range plan regarding the operations and building use of the Fair and fairgrounds.
The State Fair Act (Act) (20 ILCS 210/11) requires the Department of Agriculture to
develop and adopt a plan for the operation of each State Fair and the State
Fairgrounds and its facilities. This plan shall include operational factors as well as an
evaluation of present structures, the maintenance of present structures and the razing
of those structures no longer safe to the public or not functional. A long range
operational and building use program shall be developed. The general operational and
building plan shall be presented to the public at a public hearing and adopted as the
official plan for the State Fairgrounds. This operational and building plan is not to be
construed as a restriction on day-to-day operations or minor use changes.
The DSF did have documents for long term capital requests, but these were not part
of a "formal" plan which was presented to the public at a public hearing.
DSF officials stated that the DSF has had Capital Development Board provide a
"project survey" of all buildings and grounds on the DSF but has not prepared a
formal long-range plan from that.
Sound management practices require appropriate short and long range planning. By
not preparing such plans, the DSF is not in compliance with the Act. (Finding Code
No. 11-4)
RECOMMENDATION:
We recommend the DuQuoin State Fair develop, adopt and present to the public a plan
for the operation of the DSF and its fairgrounds and facilities in accordance with the
Act.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will develop, adopt, and present to the public a
plan for the operation of the fair and its fairgrounds and facilities in accordance with
the Act.
13
11-S FINDING: (Failure to publish professional and artistic contracts)
The DuQuoin State Fair (DSF) did not publish professional and artistic contract
exceptions in the Illinois Procurement Bulletin as required by the Illinois Procurement
Code (Code) (30 ILCS 500/35-35).
We noted the DSF failed to submit professional and artistic contracts exempt from the
procurement process to the chief procurement officer for the 2010 and 2011 Fairs to
be published in the Illinois Procurement Bulletin. Many of the exempt contracts were
for performers. We noted 13 contracts, totaling $130,500, and 16 contracts, totaling
$92,816, during the 2010 and 2011 Fairs, respectively, that should have been filed
with the chief procurement officer for inclusion in the Illinois Procurement Bulletin.
The Illinois Procurement Code (Code) (30 ILCS 500/35-35) allows for sole source,
professional and artistic contracts that are nonrenewable, one year or less in duration,
and have a value ofless than $20,000 to be exempt from the competitive request for
proposal process outlined in 30 ILCS 500/35-30 of the Code. All exceptions granted
under 30 ILCS 500/35-35 are to be submitted to the chief procurement officer and
published in the Illinois Procurement Bulletin and shall name the authorizing chief
procurement officer or State purchasing officer, and shall include a brief explanation of
the reason for the exception.
DSF officials stated professional and artistic procurements less than $20,000, one
year or less in duration, and non-renewable have been categorized as small purchases
and as such not published in the Illinois Procurement Bulletin.
Failure to follow the Code represents noncompliance with State statute and hinders
transparency in the procurement process. Publishing professional and artistic
procurement exemptions in the Illinois Procurement Bulletin helps to notify future
potential parties of interest in fair activities and establishes a mechanism for achieving
the most cost-effective price for such contracts. (Finding Code No. 11-5)
RECOMMENDATION:
We recommend the DuQuoin State Fair implement procedures to ensure professional
and artistic contracts are published on the Illinois Procurement Bulletin as required by
the Illinois Procurement Code.
DEPARTMENT RESPONSE:
The Fair agrees with the finding and will implement procedures to ensure
professional and artistic contracts are published on the Illinois Procurement Bulletin
as required by the Illinois Procurement Code.
14
PRIOR FINDINGS NOT REPEATED (STATE COMPLIANCE)
A. FINDING: (Contracts not signed timely)
During the prior engagement period, the DuQuoin State Fair (DSF) did not have signed
and dated contracts or proof of insurance in place with DSF vendors prior to performing
services at the 2009 and 2008 DSF.
During the current period, our testing indicated that the DSF implemented procedures to
ensure that the contracts examined were signed and dated prior to the performance of
services for the 2011 and 2010 DSF. (Finding Code No. 09-1)
B. FINDING: (Non-paid credential form missing information)
During the prior engagement period, the DuQuoin State Fair (DSF) did not document the
purpose for issuing non-paid credentials on the requisition forms.
During the current period, our testing indicated that all issuances of non-paid credentials
were properly documented on the non-paid credential requisition forms. (Finding Code
No. 09-2)
15
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPLIANCE EXAMINATION
For the Two Years Ended September 30,2011
SUPPLEMENTARY INFORMATION FOR STATE COMPLIANCE PURPOSES
SUMMARY
Supplementary Information for State Compliance Purposes presented in this section of the report
includes the following:
• Fiscal Schedules and Analysis:
Comparative Schedule of Revenues and Expenditures
Notes to Comparative Schedule of Revenues and Expenditures
Analytical Review of Revenues and Expenditures
Reconciliation of State Fair Revenues to Deposits
Remitted to the Comptroller
Detail Schedule of Revenues
Pari-Mutuel Wagering Receipts and Expenditures
Grandstand Shows Revenues and Expenditures
Competitive Events Revenues and Expenditures
• Analysis of Operations:
Division Functions and Planning Program
Number of Employees
Miscellaneous Operating Statistics (Not Examined)
The accountants' report that covers the Supplementary Information for State Compliance
Purposes presented in the Compliance Report Section states the auditors have applied certain
limited procedures as prescribed by the Audit Guide as adopted by the Auditor General, except
for information on the Miscellaneous Operating Statistics on which they did not perform any
procedures. However, the accountants do not express an opinion on the supplementary
information.
16
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES
For the Years Ended September 30,2011,2010 and 2009
2011 2010
Revenues:
Tickets $ 733,911 $ 723,601 $
Space rental 582,029 649,500
Entry 17,338 28,604
Sponsorship 14,290
Total revenues 1,347,568 1,401,705
Expenditures:
Personal services 503,607 432,408
Contractual payroll employees 7,857 34,548
Contributions - employee retirement system
Contributions - social security 43,806 35,402
Contractual services 490,178 473,777
Travel
Commodities 23,824 21,830
Printing 4,989 5,837
Equipment 950 133
Telecommunications 28,152 27,095
Interest 3,251
Fair entertainment 579,819 497,849
Awards and premiums 35,534 78,040
Financial assistance 4,698
Total expenditures 1,718,716 1,614,868
Deficiency of revenues under expenditures $ (371,148) $ (213,163) $
See notes to comparative schedule of revenues and expenditures.
17
2009
423,309
569,772
27,233
1,020,314
268,422
84,907
8,507
26,942
404,582
980
5,728
5,740
25,748
4,959
333,618
119,295
432,068
1,721,496
(701 '182)
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
NOTES TO COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES
For the Two Years Ended September 30, 2011
1. SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES:
The accompanying schedule of revenues and expenditures (Schedule) presents activity
directly related to the operations of the DuQuoin State Fair (DSF). It includes activity in the
Agricultural Premium Fund - 0045 and the General Revenue Fund - 0001.
Revenues and expenditures are based on a fair year, October 1 to September 30, and contain
activity from more than one State fiscal year. For example, revenues and expenditures for
2011 are for the fair held in August 2011, but consist of activity from the State fiscal years
2011 and 2012.
Revenues consist of fair related receipts deposited with the State Comptroller from October
1 to September 30 plus accrued receivables at September 30 of the current year related to the
current year's fair less accrued receivables after September 30 of the prior year related to the
prior year's fair.
Expenditures consist of fair related expenditures from appropriated accounts from October 1
through September 30, plus accrued expenditures after September 30 of the current year
related to the current year's fair less accrued expenditures at September 30 of the prior year
related to the prior year's fair.
The Schedule does not include all Department of Agriculture (Department) expenses related
to fair activity (i.e., Department Officials' payroll expenses for work pertaining to the fairs,
administrative overhead expenses relating to the fairs incurred by divisions other than the
Division of Fairs and Horseracing, and capital improvements made to the Fairgrounds from
appropriations to the Department of Agriculture and the Capital Development Board) due to
management's difficulty of ascertaining, estimating, and allocating these expenses.
Revenue and expenditures for non-fair activities held at the DuQuoin State fairgrounds are
excluded from the comparative Schedule. See Note 3.
Revenues and expenditures relating to pari-mutuel wagering are presented separately and are
not included in the Schedule. However, the cost of the pari-mutuel contract is included in
contractual services expenditures.
18
2. FISCAL SCHEDULES AND ANALYSIS OF OTHER SPECIAL REVENUE FUNDS:
The fiscal schedules and analysis of other special revenue funds, including the Illinois
Standardbred Breeders Fund- 0708 and the Illinois Thoroughbred Breeders Fund- 0709,
relating to the DuQuoin State Fair are not included in this report. The fiscal schedules and
analysis of these funds are included in the compliance examination of the Department of
Agriculture.
3. NON-FAIR REVENUES AND EXPENDITURES:
Non-fair expenditures from the Agricultural Premium Fund for each June 30 fiscal year are
limited to non-fair revenues for the preceding fiscal year ended June 30 plus any unspent
balances from preceding periods, not exceeding the amount appropriated. Non-fair revenues
and expenditures from the Agricultural Premium Fund for fiscal years ended September 30
were as follows:
Revenues
Expenditures
Excess (deficiency) of revenues
over (under) expenditures
4. PRIOR YEAR EXPENDITURES
2011
$ 692,833
524,962
$ 167,871
2010
$ 572,172
383,505
$ 188,667
2009
$ 421,112
515,736
$ (94,624)
Certain amounts from the 2009 Compliance Examination have been changed to correct for
expenditures previously omitted.
19
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
ANALYTICAL REVIEW OF REVENUE AND EXPENDITURES
For the Two Years Ended September 30, 2011
The scope of the analytical review explains any increase or decrease of revenue items which vary
by 10% or more and $15,000 from the prior year and expenditure items which vary by 20% or
more and $40,000 from the prior year.
Revenues
Ticket revenues increased $300,292 (71%) from fiscal year 2009 to 2010 due to additional
grandstand entertainment provided, resulting also in an increase in parking and camping fees.
Space rental revenues increased $79,728 (14%) from fiscal year 2009 to 2010 due to an increase
in space rental rates in fiscal year 2010.
Space rental revenues decreased $67,4 71 ( 10%) from fiscal year 201 0 to 2011 due to a change in
the classification of advertising revenues from 2010 to 2011, along with a decrease in fee rates
for concessions and exhibits and the rebidding of the certain contracts.
Expenditures
Personal services expenditures increased $163,986 ( 61%) from fiscal year 2009 to 2010 due to
an increase in the number of temporary employees in 2010.
Contractual payroll employees expenditures decreased $50,359 (59%) from fiscal year 2009 to
2010 due to an increase in the number of temporary employees and the simultaneous decrease in
contractual employees in fiscal year 2010.
Fair entertainment expenditures increased $164,231 ( 49%) from fiscal year 2009 to 2010 due to
an increase in fiscal year 2011 appropriations to provide additional entertainment.
Awards and premiums expenditures decreased $41,255 (35%) from fiscal year 2009 to 2010 and
decreased $42,506 (54%) from fiscal year 2010 to 2011 due to a decrease in the values of
premiums awarded.
Financial assistance expenditures decreased $427,370 (99%) from fiscal year 2009 to 2010 due
to the elimination of related fiscal year 201 0 appropriations.
20
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
RECONCILIATION OF STATE FAIR REVENUES TO
DEPOSITS REMITTED TO THE COMPTROLLER
For the Years Ended September 30,2011 and 2010
Total2011 DuQuoin State Fair revenues
Add:
Deposits in transit, beginning of period 09/30/10
Previous fair year money
Deduct:
Deposits in transit, end ofperiod 09/30/11
Revenue received after 9/30/11
Adjustments
Receivables
Cash receipts per Comptroller
Total2010 DuQuoin State Fair revenues
Add:
Deposits in transit, beginning of period 09/30/09
Previous fair year money
Deduct:
Deposits in transit, end of period 09/30/10
Revenue received after 9/30/10
Adjustments
Receivables
Cash receipts per Comptroller
21
$ 1,347,568
7,190
12,070
19,260
4,585
4,895
43
5,455
14,978
$ 1,351,850
$ 1,401,705
5,538
12,451
17,989
7,190
(10,927)
62
582
(3,093)
$ 1,422,787
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
DETAIL SCHEDULE OF REVENUES
For the Years Ended September 30,2011,2010, and 2009
2011 2010
Ticket revenues:
Parking admissions $ 287,339 $ 309,543
Grandstand shows 367,960 329,626
Camping 78,612 84,432
Totals $ 733,911 $ 723,601
Space rental revenues:
Fees and commissions from exhibits,
concessions, and other contractors $ 352,317 $ 382,368
Carnival 196,903 231,142
Beer concessions 32,809 35,990
Totals $ 582,029 $ 649,500
Entry revenues:
2009
$ 214,070
144,242
64,997
$ 423,309
$ 305,362
236,698
27,712
$ 569,772
Regular entry $ 17,338 $ 28,604 $ 27,233
Sponsorship revenues:
Sponsorship $ 14,290 =$====== =$====
22
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
PARI-MUTUEL WAGERING RECEIPTS AND EXPENDITURES
For the Years Ended September 30, 2011, 2010, and 2009
2011 2010
Receipts (net commissions) $ 39,607 $ 35,025 $
2009
97,982
Expenditures (120,329) (116,87 6) __( :..::,20.:..:0:.!..7:..,. :..::32 ~)
Deficiency of receipts under expenditures $ (80,722) $ (81,851) $ (102,750)
Note: The DuQuoin State Fair contracted with Maywood Park Trotting Association in 2011, 2010, and 2009 to
conduct the pari-mutuel wagering operations at the DuQuoin State Fair. Maywood collected receipts and paid
expenditures associated with pari-mutuel wagering in 2011, 2010, and 2009. The DuQuoin State Fair paid
Maywood $80,722, $81,851 and $102,750 for losses on the 2011,2010, and 2009 contracts, respectively.
Receipts (net commissions) are a function of the total on-track wagering (handle) less returns to bettors
and privilege tax. Expenditures represent costs paid by the contractor associated with pari-mutuel wagering.
23
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
GRANDSTAND SHOWS REVENUES AND EXPENDITURES
For the Years Ended September 30,2011, 2010, and 2009
2011 2010
Revenues:
Ticket sales $ 367,960 $ 329,626
Expenditures:
Entertainment 388,700 366,500
Sound and light 51,300 51,300
Stagehands 50,972 53,291
Catering 6,036 7,912
Equipment rental 1,500
Transportation 901 1,526
Ushers 4,566 2,570
Turnstiles 1,516 1,660
Backstage coordinator 2,700 2,800
Security 6,315 2,258
Information booths 1,568
Interpreters 2,778 2,566
Announcer 1,500
Total expenditures 518,852 493,883
Deficiency of revenues under expenditures $ (150,892) $ (164,257)
The above represents direct revenues and expenditures related to the grandstand shows.
2009
$ 144,242
171,675
65,900
48,374
5,543
291,492
$ (147,250)
This schedule does not include other indirect revenues and expenditures relating to grandstand shows
including but not limited to the following:
-Concessions
-Parking
-Facility costs and overhead
-Fair personnel costs related to grandstand ticket sales, booking and maintenance,
and overhead.
24
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
COMPETITIVE EVENTS REVENUES AND EXPENDITURES
For the Years Ended September 30,2011, 2010, and 2009
2011 2010
Revenues:
Entry fees $ 17,338 $ 28,604
Expenditures:
Extra help 16,296 24,288
Contractual services 10,840 22,156
Commodities 1,319 3,612
Awards and premiums 34,288 77,400
Total expenditures 62,743 127,456
Deficiency of revenues under expenditures $ (45,405) $ (98,852)
$
$
The above represents direct revenues and expenditures related to competitive events held
during the 2011,2010, and 2009 DuQuoin State Fairs. Entry fees include fees directly
related to the Fair and do not include entry fees for special events.
This schedule does not include other indirect revenues and expenditures relating to
competitive events including but not limited to the following:
-Concessions
-Parking
-Facility costs and overhead
-Fair personnel costs related to competitive events, maintenance, and overhead.
25
2009
27,233
6,247
113,809
120,056
(92,823)
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
ANALYSIS OF OPERATIONS
DIVISION FUNCTIONS AND PLANNING PROGRAM
For the Two Years Ended September 30, 2011
General
The DuQuoin State Fair (DSF) is an operating entity of the Department of Agriculture. The DSF
is located at the DuQuoin State Fairgrounds, 655 Executive Drive, DuQuoin, Illinois 62832-
3850. The Director (Acting) of the Department of Agriculture is Robert F. Flider. The DSF is
held to promote agriculture and the agriculture industry, and to provide for exhibits and activities
in the fields of industry, education, arts and crafts, labor, entertainment and other areas of interest
to the people of Southern Illinois. The Department of Agriculture is responsible for developing
long-range operational and building use programs.
The State Fair Act establishes the legal responsibility of the Department of Agriculture. The
Department of Agriculture establishes the rules and policies governing the operations of the
DuQuoin State Fair. These rules and policies were adopted by the DuQuoin State Fair.
The DuQuoin State Fair is composed of three functional areas through which the above
objectives can be achieved:
• Office of the DuQuoin State Fair Manager
• Space Rental
• Competitive Events
Operation of the DSF is financed through appropriations approved by the General Assembly and
funded from the General Revenue Fund and the Agricultural Premium Fund. A description of
each functional area follows:
Office of the DuQuoin State Fair Manager- The State Fair Manager provides centralized
management for the DSF and is primarily responsible for its adherence to the provisions ofthe
DuQuoin State Fair Act. The manager promotes the utilization of fairground facilities
throughout the year and develops a plan for the operation of the DSF. The manager also plans
and provides general management responsibilities to all horse-related events and is responsible
for promoting, soliciting, scheduling, and coordinating all programs for the usage of buildings
and grounds. Other duties include general responsibility for the initiating, drafting, and
executing of all DSF contracts, enforcing Administrative Rules and Regulations, and developing
policies and procedures for the issuance of non-paid credentials. The DuQuoin State Fair
Manager is John Rednour, Jr.
26
Space Rental - The Space Rental Manager assists in evaluating, developing, revising, and
implementing policies and procedures associated with the operation of the DSF concessions,
commercial exhibits, etc. The Space Rental Department is directly charged with the
responsibility of collecting and receiving all rental funds and maintaining adequate records of
rental activity.
Competitive Events- The Competitive Events Manager directs, develops, and coordinates a
program of events for the DSF, and maintains the necessary records for competitive events
administration. Prior to the fair, the Competitive Events Manager determines event premiums
and prizes, procures the appropriate prizes, directs the preparation of event try books, and
collects entry fees from competitors. During the DSF, the Competitive Events Manager's
responsibilities include obtaining proper authorization for the awarding of premiums and prizes
and determining that winners of the events receive the proper premium or prize.
Strategic Planning
The mission of the DSF is to provide an attractive and entertaining annual fair that promotes
family fun and agriculture awareness, supports local business, and optimizes fairground
facilities. Additionally, it is the mission of the DSF to promote and contract for non-Fair special
events to maximize use of the fairgrounds.
The main goal of the DSF is to provide a safe, entertaining, and educational experience at the
Fair. In order to accomplish this goal, the following objectives have been set.
•
•
•
•
•
•
•
•
Increase the attendance at the Fair.
Increase the number of concessionaires .
Monitor the appearance of the exhibits~
Increase the number of private sponsorships .
Update, renovate, and maintain buildings and structures on the fairgrounds to
enhance their appearance, ensure their public safety level, and provide additional
comfort to fairgoers.
Provide additional entertainment, exhibits, educational events, and clinics .
Increase the number of non-Fair events, with the goal of increasing revenue
generated by non-Fair events.
Establish a close working relationship with the County Fairs and horse racing
industry of Illinois.
The Department of Agriculture has developed a strategic plan that reflects the vision and goals of
the Agency. The DSF is a part of the Department of Agriculture's strategic planning process.
The strategic plan is reviewed on an ongoing basis.
27
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
NUMBER OF EMPLOYEES
For the Years Ended September 30,2011,2010, and 2009
2011 2010
Average Full-Time Employees:
Department:
Administration 4 4
Oct-
June July
Temporary Employees:
State Fair- Approximate
Number ofEmployees (2011) 4 16
State Fair- Approximate
Number ofEmployees (2010) 4 19
State Fair- Approximate
Number of Employees (2009) 5 0
Bureau of Buildings and Grounds
Approximate Number of Employees (20 11) 16 36
Bureau of Buildings and Grounds
Approximate Number of Employees (20 1 0) 40 51
Bureau of Buildings and Grounds
Approximate Number of Employees (2009) 20 41
28
2009
4
August-
Sept
178
177
57
86
110
Ill
STATE OF ILLINOIS
DEPARTMENT OF AGRICULTURE
DUQUOIN STATE FAIR
MISCELLANEOUS OPERATING STATISTICS
For the Years Ended September 30, 2011, 2010, and 2009
(Not Examined)
%Increase
(Decrease)
2011 2010 2009 201112010
Number of Contracts:
Concessions 158 124 139 27.4 %
Exhibits 20 46 24 (56.5)
Contractual Services 13 14 16 (7.1)
Entertainment 25 33 18 (24.2)
Sponsorships 20 27 27 (25.9)
Tickets Sold:
Parking Fees - Tickets 27,477 31,061 31,094 (11.5)
Grandstand Shows - Tickets 20,613 22,448 16,899 (8.2)
Miscellaneous Statistics:
Estimated Attendance 351,000 350,000 330,000 0.3
Amount of Beer Sold - Kegs 260 334 249 (22.2)
Amount of Beer Sold - Cases 2,081 1,920 2,072 8.4
Number of Camping Permits 1,084 1,372 1,020 (21.0)
Number of Parking Permits 7,718 8,858 8,245 (12.9)
%Increase
(Decrease)
2010/2009
(10.8) %
91.7
(12.5)
83.3
0.0
(0.1)
32.8
6.1
34.1
(7.3)
34.5
7.4
The estimated attendance was calculated by DuQuoin State Fair officials and is based on the number of paid and
unpaid parking passes and an established fair industry standard of 3.7 people per car. This formula has been
consistently used every year to calculate estimated attendance.
29
